BAM GOLD PROJECT J u n i o r
L a k e
N o r t h w e s t e r n
April 2020
P r o p e r t y O n t a r i o
www.landore.com
Landore Resources Ltd. Important Notice The information contained in this presentation (this "presentation") has been prepared by Landore Resources Limited ("the Company") as at the date of this presentation and is subject to updating, completion, revision, further verification and amendment without notice. This presentation is for general information only and is the property of the Company. Making this presentation available in no circumstances whatsoever implies the existence of a commitment or contract by or with the Company, or any of its affiliated entities, or any of its or their respective subsidiaries, directors, officers, representatives, employees, advisers or agents for any purpose. This presentation has not been approved by the United Kingdom Listing Authority under the Prospectus Rules (made under Part VI of the Financial Services and Markets Act 2000 ("FSMA")) or otherwise, or by the London Stock Exchange plc. This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on the completeness, accuracy or fairness thereof. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company or its directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication written or otherwise. In addition, in issuing this presentation, the Company undertakes no obligation to update or to correct any inaccuracies which may become apparent in this presentation. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any undertaking, representation, warranty or other assurance made fraudulently. The statements contained in this presentation may include "forward looking statements" that express expectations of future events or results. All statements based on future expectations rather than on historical facts are forward looking statements that involve a number of risks and uncertainties and the Company cannot give assurance that such statements will prove to be correct. Any forward looking statements made by or on behalf of the Company speak only as of the date they are made. The Company gives no undertaking to update forward looking statements to reflect any changes in expectations, events, conditions or circumstances upon which such statements are made. The presentation should not be considered a recommendation by the Company or any of its affiliated entities, or any of its or their respective subsidiaries, directors, officers, representatives, employees, advisers or agents in connection with any purchase of or subscription for securities of the Company. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In particular, this presentation should not be copied or distributed by recipients and should not be distributed by any means including electronic transmission, to persons with addresses in the United States of America, Canada, Australia, South Africa or Japan their possessions or territories or to any citizens thereof, or to any corporation, partnership or such entity created or organised under the laws thereof. Any such distribution contrary to the above could result in a violation of the laws of such countries. April 2020 2
Executive Summary
Focused on the 100% owned Junior Lake Gold project in Ontario
1.015M oz resource with multi-million oz potential
Highly prospective Archean greenstone belt with over 30km strike length
Robust PEA completed in February 2019
Mining leases in hand (21-year renewable mining, surface rights)
Additional value through large portfolio of assets, including B4-7 Ni-Co-Cu-PGM deposit
Led by management team who have discovered over 6.5M oz gold
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Landore Properties - Canada Politically Secure and Mining Friendly
CANADA
USA
Hudson Bay
QUEBEC
NEWFOUNDLAND AND LABRADOR
ONTARIO Miminiska Lake
Lessard
Junior Lake Thunder Bay
Chibougamau
Seeley Lake Sudbury Lake Superior
Montreal
West Graham Lake Huron
Toronto
USA USA
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Landore Gold Properties - Ontario One of the Top Ten Mining Jurisdictions in the World
ONTARIO
Gold Mine
1
Red Lake Gold Mine
2
Musselwhite Mine
3
Hemlo Mine
4
Detour Lake Gold Mine
5
Porcupine
6
Macassa Mine
7
Young-Davidson Mine
2
1 Red Lake
Junior Lake 3
Thunder Bay
5 Timmins
4 6 7
Kirkland Lake Lake Superior
Sudbury
Toronto
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Junior Lake Property 30,507 Hectares
Tape Lake Lithium
Junior Lake Property Lamaune Iron Despard Lithium
Swole Lithium
BAM Gold Deposit 1,015,000 ounces gold at 1.02g/t Mining Leases 21-year renewable mining, surface rights
Lamaune Gold Prospect
B4-7 Ni/Cu Deposit
ONTARIO
VW Ni Deposit
Junior Lake
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BAM Gold Project Mineral Resources
December 2019 NI43-101 Mineral Resource Update
1,015,000 ounces gold At 0.3 g/t cut off
Category Indicated Inferred
Tonnes 21,930,000 9,153,000
Grade (g/t Au) 1.06 0.91
Contained Gold (oz) 747,000 268,000
2016 Discovery of the Year Award North West Ontario Prospectors Association ‘Bernie Schnieders’ Award for the Discovery of the Year 7
BAM Gold Project Preliminary Economic Assessment Highlights – February 2019 Project Physicals Parameter
Unit
Base Case
Extended Case
Project Life (Total)
(years)
6.75
10.25
Mine Life (Total)
(years)
6.25
9.75
Ore Mined
(000 t)
12,666
19,686
Waste Mined
(000 t)
63,428
98,584
Total Mined
(000 t)
76,094
118,269
Gold Grade
(g/t)
1.26
1.26
Contained Au Mined and Fed
(oz)
514,718
800,000
(000 t)
12,666
19,686
Au Recovery
(%)
95%
95%
Au Recovered
(oz)
488,982
760,000
Plant Feed
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BAM Gold Project Preliminary Economic Assessment Highlights – January 2020 Project Financials Parameter
Unit
Base Case
Extended Case
(US$/oz)
1,500
1,500
Net Gold Revenue (Ex Site)
(US$M)
731.03
1,136.20
Initial Capex
(US$M)
93.81
93.81
Sustaining Capex & Mine Dev’t Costs
(US$M)
1.27
1.97
(US$/oz)
806
816
Project NPV (Pre-Tax)
(US$M)
180.82
296.98
Project NPV (Post Tax)
(US$M)
124.85
203.44
Project IRR (Pre-Tax)
(%)
43.9%
47.7%
Project IRR (Post Tax)
(%)
35.4%
39.1%
(Years)
3.50
3.50
(US$/oz)
1,060
997
Gold Price (Average LOM)
All-in-Sustaining-Cost (AISC)
Project Payback Period Project Break-Even Gold Price
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BAM Gold Project Preliminary Economic Assessment Highlights – January 2020 BAM Gold Project Gold Price Sensitivity Analysis: Extended Case, Post Tax BAM Gold Project Post-Tax Sensitivity Analysis - Extension Case (USD $1500) US$ 500.M
US$ 400.M
Post-Tax NPV
US$ 300.M
US$ 200.M
US$ 100.M
Plant Opex
US$ 0.M
Mining Opex
Capex
Overall Opex
Gold price
(US $ 100 M) (40.%)
(30.%)
(20.%)
(10.%)
-
10.%
20.%
30.%
40.%
% Change 10
BAM Gold Project December 2019 Pit Design WEST PIT
Additional resources within the main BAM mineralisation, after recent drilling
EAST PIT
2019 Block Model – New Pit Shell (Run B at USD$1500)
Main BAM mineralisation interpretation has been modified in 2019 – tightened interpretation around higher grade intervals and limiting internal waste zones (e.g. dyke intrusives)
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BAM Gold Project December 2019 Cross Section 2350E
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BAM Gold Project December 2019 Cross Section 1200E
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BAM Gold Project Detailed Metallurgical Assessment – January 2019 •
98% extraction of gold achievable with: o Conventional milling o Grinding to 100% passing 212 micron o gravity separation (+65%); and o Cyanide leaching
•
Very Low Reagent Consumption o Cyanide consumption at ±0.40 kg/t o Lime consumption at ±0.60 kg/t
•
Heap leaching with fine crushing and agglomeration can achieve acceptable extractions of gold (±84% at test conditions).
Simple processing path Conceptual Milling Flowsheet
Maximum recovery Low CAPEX and OPEX 14
2019 Exploration Program Established Gold Potential West and East of the BAM Gold Deposit • BAM Gold Deposit
• Extension drilling delineated Inferred resource for a further 500 metres west of existing resource
• Exploration
• Geophysics and Soil Sampling defined gold trends for 7 kilometres to the west of the defined deposit
Prospective area for 7km west of BAM Gold Deposit focus of 2019 Exploration Activities 15
2019 Ground Geophysics Felix Lake Grid – Juno Lake to Boras Lake Electromagnetic (HLEM-MaxMin) VLF and Magnetometric ground geophysics survey
Juno Lake Boras Lake
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Regional Growth Potential Soil Gold Anomalies
BAM Gold Deposit
B4-7 Ni/Cu Deposit
VW Ni Deposit
17
Regional Growth Potential Soil Copper Anomalies – Pathfinder Element
BAM Gold Deposit
B4-7 Ni/Cu Deposit
VW Ni Deposit
18
Regional Growth Potential Soil Gold Trends
Soil Gold Trends
BAM Gold Deposit
B4-7 Ni/Cu Deposit
VW Ni Deposit
19
BAM Gold Project Resource Growth – Depth Potential
Interpreted plunge of HG mineralisation within the BAM Sequence
Potential HG Deep Target Zone in BAM Sequence
• Potential down plunge deep target drilling for possible Open Pit cut back or underground mining
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BAM Gold Project Preparing for Development Mining Leases • • •
6 mining leases covering 7,862 hectares 21 years renewable for further terms of 21 years Landore has the right, subject to provisions of certain Acts and reservations, to: o Sink shafts, excavations etc., for mining purposes o Construct dams, reservoirs, railways, etc., as needed
Baseline Studies • Baseline surface water quality monitoring of area lakes and streams on-going since 2007 • Environmental Baseline study of Vegetation, Wildlife, Fish and Fish Habitat • Bathymetry Study of Ketchikan Lake (adjacent to VW Deposit) Performed since 2007 by Golder Associates Ltd.
o Erect buildings, machinery, furnaces, etc., as required and to treat ores
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Management Team & Board of Directors Executive Directors and Management
William Humphries | Chief Executive Officer o Bill Humphries has over 46 years’ experience in the mining and civil engineering industries o From January 1999 to July 2002 he was Managing Director of Brancote Holdings Plc until its merger with Meridian Gold Inc. in July 2002 o Co-founder and Managing Director of Patagonia Gold Plc since its inception in November 2000 until February 2015
•
Glenn Featherby, CA | Finance Director o Glenn has over 35 years' experience in corporate advisory work and has an extensive background in the resources sector o Former Non-Executive Director of Patagonia Gold Plc and Non-Executive Chairman of Forte Energy NL
Michele Tuomi | VP Exploration and Director o Professional Geologist with +20 years mineral exploration experience in both private and public sectors and is a QP under Canadian NI 43-101 o Joined Landore’s exploration team in 2005 working mainly on the development of Landore’s Flagship Junior lake property o Appointed to her current position of VP Exploration in 2014
Non-Executive Directors •
Charles Wilkinson | Non-Executive Chairman o Charles Wilkinson is a solicitor who retired from Lawrence Graham LLP in March 2005. At Lawrence Graham he specialised in corporate finance and commercial law and advised mining companies
•
Helen Green, CA | Non-Executive Director o Employed by Saffery Champness, a UK top 20 firm of Chartered Accountants, since 1984
Since 2001, the executive team have led the discovery of over 6.5M oz of gold including Brancote Holdings with the Esquel Gold Project (3.8M oz), Patagonia Gold with four projects for 1.9M oz and currently at Landore Resources with 1.0M oz to date
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Landore Resources Ltd. Corporate Structure AIM Listed Shareholders Landore Resources Limited “Guernsey Co.” 100%
Landore Resources Canada Inc. “Landore”
90.3%
Lamaune Iron Inc. “Lamaune”
100%
Brancote US Inc. 23